August 11, 2011

Summary of Consolidated Financial Results for the First Quarter of the Year Ending March 31, 2012
SRA Holdings, Inc.
(URL: http://www.sra-hd.co.jp/)
Stock listing:Tokyo Stock Exchange
Code number:
3817
President:
Toru Kashima
For inquiries, please contact:
Makoto Kitai, General Manager, Finance Department, Administrative HeadquartersTel:(03)-5979-2666
Scheduled date of submission of quarterly securities report:
August 12, 2011―
Scheduled commencement of dividend payment:
Quarterly Results Supplemental Materials
Yes
Quarterly Results Presentation Meeting
No
Company name:

1. Consolidated results for the first quarter of the fiscal year ending March 2012 (from April 1, 2011 to June30, 2011)(1) Consolidated Operating Results (cumulative total)
Net SalesFirst quarter of fiscal
2012
First quarter of fiscal
2011(All amounts rounded down, % change YoY)
Ordinary Profit

Operating Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

7,528

(4.1)

316

45.7

363

36.0

245

506.7

7,848

(0.0)

217

(23.5)

267(13.7)

40(73.9)

Note：Comprehensive Income
First quarter of fiscal 2012: ¥276 million
First quarter of fiscal 2011: (¥41)million

First quarter of fiscal
2012
First quarter of fiscal
2011

Net Income

Net Income

per Shareper Share after Dilution

Yen

Yen

17.72

－

2.92

－

(2) Consolidated Financial Position

First quarter of fiscal
2012
Fiscal 2011

Shareholders’ Equity Ratio

Total Assets

Net Assets

Millions of yen

Millions of yen%

27,814

15,22054.7

26,451

15,522

58.5

Reference: Shareholders’ equity
First quarter of fiscal 2012: ¥15,205 million
Fiscal 2011: ¥15,482 million

2. Dividends
Dividend per Share

Fiscal 2011
Fiscal 2012

End of First QuarterEnd of Second QuarterEnd of Third Quarter

Yen

Yen

Yen

Yen

Yen

―
―

―

―

40.00

40.00

―

―

40.00

40.00

Fiscal 2012(forecast)
Note: Revision of dividend forecast in this quarter:No
1Year-end

For the Year

3. Consolidated Earnings Forecast for Fiscal 2011 (from April 1, 2011 to March 31, 2012)(% of change from FY2011 First Half or FY2011）
Net Income
Net Sales

Operating Income

Ordinary Profit

Net Income
per Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

FY2012 First Half
(for the six months ending
September 30, 2011)

16,000

（1.8）

880

10.1

880

2.9

520

31.2

37.57

FY201233,500

1.0

2,300

2.7

2,300

（3.1）

1,355

3.1

97.91

Note: Revision of consolidated results forecast in this quarter:No

4. Others(1) Changes to significant subsidiaries during the current period :No

Note: Changes in specified subsidiaries during the current period that caused changes in the scope of consolidation(2) Application of simplified accounting and application of special accounting :No

Note: Application of simplified and special accounting for quarterly consolidated financial statements(3) Changes in accounting principles and procedures, presentation, etc.
1. Changes caused by revision of accounting standards, etc. :2. Changes other than 1. above:No

No

Note: Changes in significant accounting policies and procedures, presentation which are stated in “change in important matters in
preparing quarterly consolidated financial statements”(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
First quarter of fiscal 2012:15,240,000 sharesFiscal 2011:15,240,000 shares
2. Number of treasury stock
First quarter of fiscal 2012:
1,400,230 sharesFiscal 2011:
1,400,230 shares
3. Average number of shares over period (consolidated total for quarter)
First quarter of fiscal 2012:
13,839,770 sharesFirst quarter of fiscal 2011:
13,839,771 shares*Indication of quarterly review procedure implementation status
This earnings release is not subject to the quarterly review process as required by the Financial Instruments and Exchange Act of Japan.
As of the date when this earning release was issued, the review process on quarterly financial statements as required by the Financial
Instruments and Exchange Act had been finished.

*Explanation relating to the appropriate use of results forecasts, and other noteworthy items
Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently
available and the certain assumptions that we regard as reasonable and therefore actual results may differ materially from those containedin or suggested by any forward-looking statements.

2

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

1. Qualitative Information Concerning First-Quarter Consolidated Business Results(1) Qualitative Information Concerning Consolidated Business Results
During the first quarter of the fiscal year (April 1, 2011 to June 30, 2011), although the Japanese economy remained
weak due to the impact of the Great East Japan Earthquake, production and exports began turning upward after aprevious decline, while signs of a halt in the decrease in personal consumption were also visible.
In the information services industry, the harsh business environment persisted as corporate customers maintained acautious stance toward IT investment.
Under these circumstances, in the first fiscal year of our newly formulated Medium-Term Management Plan*, theSRA Holdings Group promoted the plan’s management strategies of “undertaking structural reforms” and “fully
promoting our own IP products business and undertaking new businesses overseas.”
Specifically, in “undertaking structural reforms,” we are working to expand orders by strengthening businesscapabilities, build a high-profit production structure and transform to a cost structure appropriate for our businessscale. Regarding measures for “undertaking new business overseas,” we will actively develop our business not onlyin Europe and the United States, where we have achieved business results over long years, but also in the growthmarkets of China, India and ASEAN. As part of our efforts to promote business in China, we established a newcompany in Shanghai to carry out such business as systems development and the building of servers. This newly
established company has already commenced business operations.

Note: Outline of Medium-Term Management Plan (from the fiscal year ending March 2012 through the fiscal year
ending March 2014)
1. Management Targets[1] Promotion of structural reforms
Increase and strengthen profitability by undertaking structural reforms in existing businesses.
(Final fiscal year target: ordinary profit margin of 10.6%)[2] Medium- and long-term growth strategies
Promote our own IP products businesses. (Final fiscal year target: generate 10% of consolidated net sales)
Undertake new businesses overseas. (For the fiscal year ending March 2016: generate 10% of consolidated net sales)*Own IP products business: Business for our own-brand products covered by intellectual property rights.
[3] Operating income, ordinary profit and net income
In the final year of the Medium-Term Management Plan, strive to record “operating income,” “ordinary profit” and“net income” that exceed our previous record for profits (operating income and ordinary profit of ¥4,100 million andnet income of ¥2,200 million) recorded for the fiscal year ended March 2008.
2. Management Strategies[1] Promotion of structural reforms[Systems Development and System Operations and Infrastructure Development]
Increase profitability by strengthening the foundations of existing businesses.
◎Expand orders by strengthening our business capabilities.
3

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

◎Build a high-profit production structure.
◎Transform to a cost structure appropriate for our business scale.
[Product Sales]
Secure growth potential by expanding business.
◎Expand into new fields (manufacturing, securities, municipalities, others).
◎Promote new businesses (solutions business [sales + service], cloud computing).
◎Develop business overseas (infrastructure development business and others in China).
[2] Medium- and long-term growth strategies◎Fully promote our own IP products businesses.
Offer our own IP products businesses in growth areas (including advanced, high-profit products in Japan andoverseas).
◎Undertake businesses overseas.
Undertake business in growth markets overseas (China, India and ASEAN).
Regarding our consolidated business results for the first quarter of the fiscal year, due to the above initiatives,
revenues declined and profits increased as described below. Looking at sales, although sales increased in the Product
Sales business, sales declined the Systems Development business and the System Operations and Infrastructure
Development business. As a result, consolidated net sales declined 4.1% from the same period of the previous fiscal
year to ¥7,528 million.
At the profit level, a decline in provision for loss on construction contracts and a rise in gross profit margins at
Group companies SRA America, Inc. and Advanced Integration Technology, Inc. (AIT) led to an increase in grossprofit, while operating income rose 45.7% from the same period of previous fiscal year to ¥316 million and ordinary
profit increased 36.0% to ¥363 million. Meanwhile, net income for the quarter jumped 6.1 times, or 506.7%, from thesame period of the previous fiscal year to ¥245 million due to a sharp decline in such extraordinary losses as loss on
valuation of stocks of subsidiaries and affiliates and loss on valuation of investment securities.
A summary of consolidated business results for the first quarter by business segment is shown below.
1) Systems Development
The Systems Development business posted declines in sales to manufacturing and electric power industries. As aresult, net sales declined 15.0% from the same period of the previous fiscal year to ¥3,529 million.
2) System Operations and Infrastructure Development
Although university-related orders were at virtually the same level, corporate-related orders declined due to a shift tointernal production and a decrease in order unit prices. Therefore, net sales of the System Operations andInfrastructure Development business declined 12.1% from the same period of the previous fiscal year to ¥826
million.
3) Product Sales
Net sales of the Product Sales business increased 15.0% from the same period of the previous fiscal year to ¥3,172
million due to robust sales of devices at AIT, mainly in the financial sector, and an increase in sales of packages andother products at Software Research Associates, Inc. (SRA).
4SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

(2) Qualitative Information Concerning Consolidated Financial Condition
Regarding financial condition for the first quarter, current assets at the end of the first quarter increased ¥1,331
million from the end of the previous fiscal year to ¥19,590 million. Although notes and accounts receivable—tradedeclined ¥1,347 million due to the collection of receivables, short-term investment securities increased ¥1,256 million
because of a transfer from investment securities and other factors, while merchandise and finished goods and work inprogress rose ¥611 million and ¥415 million, respectively. Noncurrent assets increased ¥31 million to ¥8,223 million.
Despite a ¥422 million decline in investment securities, this increase was due to such factors as a ¥376 million rise inintangible assets. As a result, total assets increased ¥1,362 million to ¥27,814 million.
On the liabilities side, total liabilities increased ¥1,664 million to ¥12,594 million due to a ¥453 million rise inaccounts payable—trade as well as to a ¥359 million increase in provision for bonuses.
Total net assets declined ¥302 million to ¥15,220 million due mainly to cash dividends paid.
(3) Qualitative Information Concerning Consolidated Results Forecast
No revision has been made to forecasts in Summary of Consolidated Financial Results for the Year Ended March 31,
2011 released on May 12, 2011.

2. Summary Information (Others)(1) Significant changes involving subsidiaries during the period: None
(2) Application of simplified accounting methods and accounting methods specific to the preparation of the quarterly
consolidated financial statements: None
(3) Changes in accounting principles, changes in accounting estimates, and restatements: None

3. Important Matters Regarding Assumptions of a Going Concern
None

5SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

4. Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of Yen)
End of first quarter of

Fiscal 2011

fiscal 2012(as of March 31, 2011)(as of June 30, 2011)ASSETS
Current assets:
Cash and deposits

7,940

8,185

Notes and accounts receivable—trade

6,118

4,771

Short-term investment securities

1,504

2,760

Merchandise and finished goods

316

928

Work in process

1,024

1,439

Deferred tax assets

433

672

Other

922

841

Allowance for doubtful accounts

(2)

(9)

18,25919,590314

318

Accumulated depreciation

(191)

(199)

Buildings, net

123

118

561

562

(508)

(513)

52

49

Land

0

0

Other

100

101

Accumulated depreciation

(66)

(67)

Other, net

34

33

211

202

Other

629

1,006

Total intangible assets

629

1,006

Investment securities

4,252

3,830

Deferred tax assets

1,579

1,546

Guarantee deposits

460

460

Other

1,145

1,275

Allowance for doubtful accounts

(13)

(14)

Allowance for investment loss

(73)

(82)

Total current assets
Noncurrent assets:
Property, plant and equipment
Buildings

Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net

Total property, plant and equipment
Intangible assets

Investments and other assets

6

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

Total investments and other assets
Total noncurrent assets
Total assets

7

7,351

7,015

8,192

8,223

26,451

27,814

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

(Millions of Yen)
End of first quarter of

Fiscal 2011

fiscal 2012(as of March 31, 2011)(as of June 30, 2011)

LIABILITIESCurrent liabilities:
Accounts payable—trade

1,986

2,440

Short-term loans payable

1,901

1,969

Current portion of bonds

300

300

Accrued expenses

430

658

Income taxes payable

489

286

Accrued consumption taxes

296

133

Provision for bonuses

602

961

0

2

Provision for loss on construction contracts

151

191

Provision for loss on liquidation of subsidiaries
and affiliates
Asset retirement obligations

14

14

－

3

Other

698

1,552

6,872

8,513

3,606

3,637

444

435

Negative goodwill

2

1

Others

2

5

4,057

4,080

10,92912,594

Capital stock

1,000

1,000

Capital surplus

4,483

4,483

Retained earnings

10,963

10,654

Treasury stock

(894)

(894)

Total shareholders’ equity

15,552

15,244

Valuation difference on available-for-sale securities

239

261

Foreign currency translation adjustments

(309)

(299)

Total accumulated other comprehensive income

(69)

(38)

39

14

Total net assets

15,522

15,220Total liabilities and net assets

26,451

27,814

Provision for directors’ bonuses

Total current liabilities
Noncurrent liabilities:
Provision for retirement benefits
Provision for directors’ retirement benefits

Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income

Subscription rights to shares

8

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Millions of Yen)
Consolidated

Consolidated

cumulative total for

cumulative total forfirst quarter of fiscal

first quarter of fiscal

2011 (from April 1,2012 (from April 1,2010 to June 30, 2010)2011 to June 30, 2011)

Net sales

7,848

7,528

Cost of sales

6,704

6,285

Gross profit

1,143

1,242

Selling, general and administrative expenses

926

925

Operating income

217

316

Interest received

12

28

Dividends received

13

23

Gain on allocation of investment securities

21

－

Other

19

12

Total non-operating income

6764Interest expenses

97Foreign exchange losses－

4

Transfer agent processing fee

3

2

Other

4

2

Total non-operating expenses

17

17

267

363

Gain on reversal of subscription rights to shares－

29

Total extraordinary income－

29

Loss on valuation of investment securities

51

1

Loss on valuation of stocks of subsidiaries and affiliates

86－

Loss on application of Accounting Standard for Asset
Retirement Obligations
Provision of allowance for investment loss

13

－

－

9

Other

3

1

155

13

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary loss

Total extraordinary loss

9

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

Income before income taxes and minority interests

112

379

Income taxes-current

238

374

Income taxes-deferred

(166)

(240)

Total income taxes

72

134

Income before minority interests

39

245

Minority interests in income (loss)(0)－

Net income

40

245

Income before minority interests

39

245

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments

(39)

21

(42)

9

(81)

31

(41)

276

(40)

276

(0)

－

(Quarterly Consolidated Statements of Comprehensive Income)

Total other comprehensive income
Comprehensive income(breakdown)Comprehensive income attributable to parent
company shareholders
Comprehensive income attributable to minority
shareholders(3) Notes Concerning Premise of Going Concern
None

10

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012(4) Segment Information
I. Consolidated cumulative total for first quarter of fiscal 2011 (from April 1, 2010 to June 30, 2010)
1. Information Concerning Net Sales and Income or Losses for each Reporting Segment(Millions of yen)AmountSystemrecorded on

Operations

Systems
Development

Product

andInfrastructure

Adjustment

Total

Sales

*1

amountthe quarterly
consolidated
statements ofDevelopment

income*2

Sales(1) Sales to
Customers

4,150

940

2,757

7,848

－

7,848

3

46

109

159

(159)

－

4,153

987

2,866

8,007

(159)

7,848

309

198

170

678

(461)

217

(2) Intersegment
sales ortransfers
Total sales
Operating income

Notes:
1. The segment income adjustment of minus ¥461 million is a company-wide expense not apportioned to any reporting segment.
Company-wide expenses are general and administrative expenses and R&D expenses not attributed to any reporting segment.
2. Segment operating income is adjusted in operating income on the quarterly consolidated statements of income.

2. Information concerning impairment loss on fixed assets or goodwill for each reporting segment
None
II. Consolidated cumulative total for first quarter of fiscal 2012 (from April 1, 2011 to June 30, 2011)
1. Information Concerning Net Sales and Income or Losses for each Reporting Segment(Millions of yen)AmountSystemrecorded on

Operations

Systems
Development

Product

andInfrastructure

Adjustment

Total

Sales

*1

amountthe quarterly
consolidated
statements ofDevelopment

income*2

Sales(1) Sales to
Customers(2) Intersegment
sales ortransfers

3,529

826

3,172

7,528

－

7,528

7

58

100

166

(166)

－

11

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

Total sales

3,537

884

3,272

7,694

(166)

7,528

358

125

178

663

(346)

316

Operating income

Notes:
1. The segment income adjustment of minus ¥346 million is a company-wide expense not apportioned to any reporting segment.
Company-wide expenses are general and administrative expenses and R&D expenses not attributed to any reporting segment.
2. Segment operating income is adjusted in operating income on the quarterly consolidated statements of income.

2. Information concerning impairment loss on fixed assets or goodwill for each reporting segment
None(5) Notes on Significant Changes in Shareholders’ Equity
None(6) Significant subsequent eventsNone

5. Other Information
1. Status of Production, Orders and Sales(1) Production amounts
Production by segment in the first quarter of the fiscal year ending March 31, 2012 is as follows.
Consolidated cumulative total for
Segment information by type of businessfirst quarter of fiscal 2012 (from% change YoY

April 1, 2011 to June 30, 2011)
Systems Development (Millions of Yen)
System Operations and Infrastructure
Development (Millions of Yen)
Total (Millions of Yen)

3,986

80.0

833

86.0

4,820

80.9

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(2) Purchase amounts
Production by segment in the first quarter of the fiscal year ending March 31, 2012 is as follows.
Consolidated cumulative total for
Segment information by type of businessfirst quarter of fiscal 2012 (from% change YoY

April 1, 2011 to June 30, 2011)
Product Sales (Millions of Yen)

2,797

152.5

Total (Millions of Yen)

2,797

152.5

Notes:
12

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

1. Amounts are based on purchase price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(3) Status of orders
Production by segment in the first quarter of the fiscal year ending March 31, 2012 is as follows.
OrdersSegment information by type of business

Order backlog

received% change YoY(Millions of% change YoY

Yen)

Yen)
Systems Development(Millions of

4,134

89.8

4,123

90.2

567

75.8

1,167

85.8

Product Sales

3,840

159.1

3,670

159.9

Total

8,541

110.0

8,961

108.9

System Operations and Infrastructure
Development

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(4) Sales amounts
Production by segment in the first quarter of the fiscal year ending March 31, 2012 is as follows.
Consolidated cumulative total for
Segment information by type of businessfirst quarter of fiscal 2012 (from% change YoY

April 1, 2011 to June 30, 2011)
Systems Development (Millions of Yen)

3,529

85.0

826

87.9

Product Sales (Millions of Yen)

3,172

115.0

Total (Millions of Yen)

7,528

95.9

System Operations and Infrastructure
Development (Millions of Yen)

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

13